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Deep diveComing soonBy Ard Schippers

Why list price is the smallest line item, and how to model TCO before you sign the order form.

Publication

Point 01

License fees are the headline number, but they're rarely more than 20–30% of total cost of ownership over three years. Implementation, integrations, data migration, change management and the inevitable scope creep make up the rest.

Point 02

A good TCO model has at least six lines: license, implementation partner, internal time, integrations, training, and a contingency. Build the model before you shortlist — it changes which vendors you talk to.

Point 03

The 'cheap' ERP almost never wins on TCO. It wins on procurement optics. Make sure the people signing know the difference.

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